Correlation Between Fisher Small and Lazard Equity
Can any of the company-specific risk be diversified away by investing in both Fisher Small and Lazard Equity at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Fisher Small and Lazard Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fisher Small Cap and Lazard Equity Franchise, you can compare the effects of market volatilities on Fisher Small and Lazard Equity and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Fisher Small with a short position of Lazard Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Small and Lazard Equity.
Diversification Opportunities for Fisher Small and Lazard Equity
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fisher and Lazard is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Small Cap and Lazard Equity Franchise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Equity Franchise and Fisher Small is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Fisher Small Cap are associated (or correlated) with Lazard Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Equity Franchise has no effect on the direction of Fisher Small i.e., Fisher Small and Lazard Equity go up and down completely randomly.
Pair Corralation between Fisher Small and Lazard Equity
Assuming the 90 days horizon Fisher Small Cap is expected to under-perform the Lazard Equity. In addition to that, Fisher Small is 1.57 times more volatile than Lazard Equity Franchise. It trades about -0.04 of its total potential returns per unit of risk. Lazard Equity Franchise is currently generating about 0.07 per unit of volatility. If you would invest 998.00 in Lazard Equity Franchise on September 13, 2024 and sell it today you would earn a total of 10.00 from holding Lazard Equity Franchise or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fisher Small Cap vs. Lazard Equity Franchise
Performance |
| Timeline |
| Fisher Small Cap |
| Lazard Equity Franchise |
Fisher Small and Lazard Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Small and Lazard Equity
The main advantage of trading using opposite Fisher Small and Lazard Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Small position performs unexpectedly, Lazard Equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lazard Equity will offset losses from the drop in Lazard Equity's long position.| Fisher Small vs. Putnam Convertible Incm Gwth | Fisher Small vs. Lord Abbett Convertible | Fisher Small vs. Absolute Convertible Arbitrage | Fisher Small vs. Fidelity Sai Convertible |
| Lazard Equity vs. Lazard Global Dynamic | Lazard Equity vs. Lazard Global Dynamic | Lazard Equity vs. Lazard International Quality | Lazard Equity vs. Lazard Small Mid Cap |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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